A real estate dealer buys a house for $50,000. He pays $1250 for painting and $1750 for plumbing, and$ 1000 for grading and walks. At what price must he sell the property fo make profit of 12.5%?
Select one:
a. $ 60,750
b. $56,750
c. $54,000
d. $ 67,500

To solve this problem, we need to calculate the total cost incurred by the real estate dealer and then determine the selling price that would result in a 12.5% profit.

### Step 1: Calculate the total cost
The total cost includes the purchase price of the house and the additional expenses for painting, plumbing, grading, and walks.

\[
\text{Total Cost} = \text{Cost of House} + \text{Cost of Painting} + \text{Cost of Plumbing} + \text{Cost of Grading and Walks}
\]

\[
\text{Total Cost} = \$50,000 + \$1,250 + \$1,750 + \$1,000 = \$54,000
\]

### Step 2: Calculate the required selling price for a 12.5% profit
To make a 12.5% profit, the selling price must be 112.5% of the total cost:

\[
\text{Selling Price} = \text{Total Cost} \times \left(1 + \frac{12.5}{100}\right)
\]

\[
\text{Selling Price} = \$54,000 \times 1.125 = \$60,750
\]

### Final Answer:
The correct selling price is **$60,750**.

So, the correct answer is:
**a. $60,750**

Would you like more details or have any questions? Here are some related questions:

1. How would the selling price change with a different profit margin, say 10%?
2. What if the dealer had additional costs like insurance or legal fees?
3. How does changing the initial purchase price affect the final selling price?
4. What is the formula to calculate the profit margin?
5. How would the selling price be affected if the dealer wanted a 15% profit?

**Tip:** Always add up all your costs before applying the profit percentage to ensure accuracy in pricing.

Learn how to calculate the selling price for a real estate property to achieve a 12.5% profit. This problem involves understanding profit calculations, including the cost of purchasing a house and additional expenses like painting, plumbing, grading, and walks.

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